When should you seek out a real estate agent?

Question

I am new to real estate and have never purchased property for personal or investment purposes. I am currently doing a lot of research on investing in real estate. A common theme is to start looking at lots of properties to understand your area, and learn what to look for before buying your first property. I am currently saving up to make my first purchase, in the next year. At what point should I seek out a real estate agent? I will probably not be able to make a purchase in the next 6 months and don't want to waste a real estate agents time in the short term while I am seeking to learn. If it is too early to seek out a real estate agent, are they any recommendations for viewing properties prior to when you actually intend to purchase?

Sean Mills · Answer

@Gualter Amarelo Thanks for the great advice. This makes a lot of sense. It may be a little cynical, but I wasn't sure if realtors would just say they have experience with investors even if they had very little experience with investors. I guess that is where taking them out for a coffee or breakfast comes in. It allows you to understand their story and absorb their knowledge!I guess I have no excuses but to get started!

James Wise · Answer

I'd get a Realtor to put you on their MLS auto feed. Then do drive by's. Once your ready to buy ask that Realtor to show you a couple houses that you have determined to be the top candidates.

Gualter Amarelo · Answer

@Sean Mills Great question! I actually had it pretty easy. an investor that I had been begging to mentor me had referred him to me. That alone is a good reason to always talk about real estate with everyone you meet. You never know who else might be investing and how much they know.I recently met up with another real estate agent who is an investor as well and owned 36 units. The way I met him (and eventually asked him out to breakfast to pick his brain) was just through calling up the brokers office (remax for example) and asking for a real estate agent who owns investment property. The person on the phone didn't themselves, but they listed 3 people in their office who were well known for being intelligent investors. I took down their names and got their numbers online. I had a good chat with each one of them, and quickly discovered who's strategy was closest to mine. The breakfast cost me $10, but I got over an hour long of step by step on exactly what he did and how he did it, not to mention he referred me to a few local banks that are very flexible with investors. This is a people business. Once you start getting people on the phone and asking genuine questions, all of the doors to this business start to open!

Account Closed · Answer

A good realtor will ask for a bank statement before they start showing you proprieties to make sure you have the funds to close.Joe Gore

Sean Mills · Answer

@Gualter Amarelo Thanks for the post. You make a great case for getting a good realtor or 10. Especially the fact that they do the leg work and know the ins and outs from doing it everyday. Oh, and you can argue with free for the buyer! Can I ask how you went about finding your realtor with knowledge of investing? Was it a matter of calling different realtors and asking them questions about their history with investors/investing themselves? Or are there online resources that identify realtors with investment experience, and then selected from a group of pre-qualified realtors after talking with them?Best of luck with deal 3 and 4!Thanks!

Aaron Montague · Answer

@Sean Mills Welcome to BP Sean!!I'd grab an agent ASAP. In this day and age, your daily updates of MLS listings is wholly automated. Plus it will let you absorb, and vet, any information they are giving you about property in your target markets.Doing a basic drive by is a good way to scope out neighborhoods, check routes to local schools and get the lay of the land. Once you've saved up your pennies, go get a pre-approval letter from your bank. That letter the agent, and buyers, know you are a serious candidate for their home.

Tyrus Shivers · Answer

@Sean MillsA lot can change in the market in six months. Homes that were there are gone and new ones come up. I contacted my first agent about six months prior to being ready to purchase. I outlined my goals and the agent understood. They would send me some literature via e-mail and follow up once a month to see if I was ready to move forward. Before I was ready to purchase I drove around neighborhoods window shopping. You can determine where you want to be and do some research on the areas. So when you do call the agent you can tell them what you are looking for and where.

Gualter Amarelo · Answer

Sean, it sounds like you've got the right idea. As an investor I believe it is very important to work with a realtor who is also an investor. I have worked with 5 other real estate agents before I met my current agent. He knows the difference between a good deal and a bad deal all comes down to desirability and the numbers. So we only look at properties that fit the criteria of a "good deal". I have bought 2 houses with him and am currently looking for the 3rd and 4th! Once you get your first successful deal it becomes addicting!Always use a Realtor for the following reasons:1.) They are FREE to the buyer2.)They do ALL of the leg work so you can crunch numbers and be the investor3.)They are so much more knowlegable because they do this every dayGet a good realtor, get 10! BUT NEVER GO IT ALONE!Unless your selling, then they are too expensive and you can figure that part out on your own! So get a realtor for now and get your license so you can sell later! LOLCheers!

Sean Mills · Answer

@Aaron Montague & @Tyrus Shivers Thanks for the responses! This information is super helpful. So it sounds like in the short term I should get a real estate agent who will provide MLS listing information. I'll use this information to review properties and learn the area until finances and the right property are aligned.